# In the matter of Fibertech Infracon P Ltd. I.A. NO. 1073 OF 2020 in C.P. (IB) No. 396 OF 2018

> NCLT judgment dated 2020-11-10. Citation: TCN-2020-NCLT-00270. This is an Interlocutory Application filed by the Liquidator Ms. Rekha Shah of Fibertech…

- **Court:** NCLT
- **Order date:** 10 Nov 2020
- **Citation:** TCN-2020-NCLT-00270
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fibertech-infracon-p-ltd-ia-no-1073-of-2020-in-cp-ib-no-396-of-2018-0f122d31

## Summary

### Background

This is an Interlocutory Application filed by the Liquidator Ms. Rekha Shah of Fibertech Infracon Private Limited under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Insolvency Resolution Process of the Corporate Debtor was commenced on 17.01.2019 and this Tribunal allowed the Liquidation on 05.12.2019. The Resolution Professional was not keen to continue, the applicant in the present application was appointed as liquidator. The Resolution Professional handed over the charge to the liquidator on 24.12.2019. The applicant sought directions on the way forward and also for directing the Respondents to make payment towards liquidation cost as the applicant is handicapped in conducting the liquidation process due to unavailability of expenses and fees.

## Facts

Ms. Rekha Kantilal Shah, the Liquidator of Fibertech Infracon Private Limited, filed an Interlocutory Application (IA No. 1073 of 2020) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor's Insolvency Resolution Process commenced on 17.01.2019, and liquidation was ordered on 05.12.2019. The Resolution Professional was replaced by Ms. Shah as the liquidator on 24.12.2019. The applicant discovered that Reliance Commercial Finance Ltd. (Respondent No. 01), the original petitioner, had assigned the debt to Suraksha Asset Reconstruction Pvt. Ltd. (Respondent No. 02) on 29.09.2017, registered on 10.01.2018, and filed with the MCA on 03.05.2019. The applicant rejected Respondent No. 01's claim due to the debt assignment. Respondent No. 02

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## Issues and analysis

### Issue 1: Whether the Respondent No. 01 was eligible to initiate CIRP, given the assignment of debt to …

**Ratio:** The legal principle is that a financial creditor must have a valid claim at the time of

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**Reasoning:** The Tribunal observed that if the fact of debt assignment had been brought to its notice

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**Interpretation:** The interpretation is that the assignment of debt prior to the initiation of

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**Application:** In this case, the Tribunal found that the debt was assigned to Respondent No.

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** Rekha Kantilal…
- **Respondents:** Fiber Infracon…; Reliance Commercia…

## Timeline

- **2017-09-29 — Debt Assi…**: Reliance Commercial Finance Ltd. assigned the debt to Suraksha Asset Reconstruction Pvt.…
- **2018-01-10 — Registration of Debt…**: The debt assignment was registered…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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